A message to students just starting Economics 1xxx

It’s not about being a Libertarian, Liberal, Democrat, Socialist, Conservative, or anything of the sort. It’s about understanding how economies work. I wish more people in the world would have some understanding of basic economics. If you take nothing else away from the course, that is what I wish you to have.<br><br>This is the language of economics. If you want to understand economics, you need to learn this language. It’s like any language, it’s not always easy to learn but it is well worth the effort.<br><br>Marginal benefit and marginal cost are more important than absolute benefit and absolute cost. (There are some exceptions, but you don’t need to know them for your first course.)<br><br>Your willingness to pay is the maximum you are willing to pay for something. You should never pay more than your willingness to pay for something. You will regret it. The same with other people’s willingness to pay.<br><br>Opportunity cost is often more important than direct cost. Think about it.<br><br>Donut Marginal Benefit > Marginal Cost → Buy Donut. (Donuts are good. I’m not saying you should always buy donuts. I’m just giving an example)<br><br>Car Marginal Benefit ≤ Marginal Cost → Don’t buy Car. (Cars are a lot of work. Again, I’m just giving an example)<br><br>Externalities are important. You need to understand negative externalities and positive externalities. They are very important when making decisions.<br><br>You don’t understand economics until you can take an objective view of your own biases and sympathize with people who have different biases than you.